Question: Exhibit 4 3 presents the balance sheet prepared by Svenson a

Exhibit 4.3 presents the balance sheet prepared by Svenson, a Swedish telecommunications firm, for Years 7 and 6.

Svenson applies IFRS and reports its results in millions of Swedish kronor (SEK). In addition to the items reported in Svenson’s balance sheet, assume the following hypothetical information is available to you. (Adapted from the financial statements of Ericsson.)
■ In Year 7 Svenson revalued land with an acquisition cost of SEK300 million upward, to its current fair value of SEK1,200 million.
■ In Year 7 Svenson wrote down the value of equipment, with a net carrying value of
SEK2,400 million, to its fair value of SEK1,600 million.
■ Included in current provisions for Year 7 is the estimated loss on a lawsuit that a competitor filed, alleging patent infringement. Svenson estimates the following range of outcomes for this lawsuit: 10% chance of damages of SEK6,000 million, 10% chance of damages of SEK2,400 million, 30% chance of damages of SEK500 million, 10% chance of damages of SEK40 million, and 40% chance of zero damages. Prepare a balance sheet for Svenson for Year 7, following the format, terminology, and accounting methods required by U.S. GAAP. Ignore any income tax effects of any revisions to reportedamounts.
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